percent , how much are you willing to pay to purchase one share of this stock today ? $ 16.67 $ 16.00 $ 18.23 $ 17.68 $ 15.57 Which one of the following is a source of cash ? Granting credit to a customer Purchase of inventory Acquisition of debt Payment to a supplier Repurchase of common stock Nadine ’ s Home Fashions has $ 2.12 million in net working capital . The firm has fixed assets with a book value of $ 31.64 million and a market value of $ 33.9 million . The firm has no long-term debt . The Home Centre is buying Nadine ’ s for $ 37.5 million in cash . The acquisition will be recorded using the purchase accounting method . What is the amount of goodwill that The Home Centre will record on its balance sheet as a result of this acquisition ? $ 5.86 million $ 3.34 million $ 4.14 million $ 1.48 million $ 3.74 million Chelsea Fashions is expected to pay an annual dividend of $ 1.10 a share next year . The market price of the stock is $ 21.80 and the growth rate is 4.5 percent . What is the firm ’ s cost of equity ? 9.55 percent 10.54 percent 9.24 percent 7.91 percent 9.77 percent Operating leverage is the degree of dependence a firm places on its : Depreciation tax shield . Variable costs . Fixed costs .